According to Canadian Black Book, compact cars are now 50 percent more expensive than in 2020, while SUV prices are up 25 percent. Overall, the average new car cost nearly $60,000 as of September 30, 2023, up from just under $40,000 in 2020.

While vehicle costs are climbing, so too are car insurance premiums. If you’re seeking ways to cut costs when purchasing a new or pre-owned vehicle, understanding which cars offer the best value for your money is also important. Your car insurance premium, in addition to factors like your driving record, location, and age, is influenced by the type of vehicle you choose to insure.

Before settling on a particular make and model, it’s wise to evaluate which types of vehicles typically incur higher or lower insurance costs.

5 Types of Vehicles That Cost Less to Insure.

1. Larger & Heavier Vehicles. Opting for larger vehicles, such as minivans and SUVs, can potentially save you on car insurance. These vehicles are higher off the ground and typically have better safety ratings in collisions, which insurers view favourably. However, it’s important to note that some specific larger models may also be common targets for theft, which could result in a higher insurance premium. Always review the most stolen vehicles in your region – more details are provided below.
2. Vehicles in Basic Classes. While owning a luxury or sports car may be your dream, these vehicles are often labelled as “higher risk” to insure. Due to their high speeds, they tend to be involved in more accidents and are more expensive to repair. Choosing a more practical base model vehicle will typically help you save on car insurance.
3. Older Vehicles. If you want to save on car insurance, consider the financial benefits of choosing older vehicles. Newer, high-tech cars often come with more expensive parts and costs, which can significantly raise your insurance premium. On the other hand, a used car that is only a couple of years old and still in excellent condition can offer substantial savings on your insurance premium.
4. Vehicles with Smart Safety Features. Vehicles that include various safety technologies usually have better safety ratings and thus lower the cost of insurance. Look for some of these safety features when searching for a new ride: automatic emergency braking, collision warning sensors and cameras, lane departure or blind spot warnings, rearview camera and winter driving handling.
5. Vehicles with Lower Theft and Claim Rates. Before you buy, it’s wise to do some research to see what makes and models are more commonly targeted by thieves. Also, consider which vehicles are reported more often in accidents. These trends usually indicate a higher insurance premium.

Vehicles That Cost More to Insurance in Nova Scotia.

If a vehicle’s value is above $100,000, you can expect to pay a higher insurance premium with an additional surcharge. Another key factor contributing to higher insurance costs is the vehicle’s risk of being stolen. These vehicles, if newer than 2019, are currently high-theft risk vehicles and are subject to an insurance surcharge.

• Lexis RX Series
• Land Rover – Range Rover
• Jeep Grand Cherokee
• Toyota Highlander
• Honda CRV
• Ford F150
• Dodge Ram 1500 Series
• Acura RDX
• Chevy Silverado
• GMC Sierra

While these are some vehicles with higher and lower insurance costs – this is just part of a bigger purchase decision. It’s worth considering other factors like our Top Tips for Finding the Best Car Insurance Rates. When you’re ready to get that new car on the road,  contact our experienced and friendly Bauld Insurance Advisors to explore your best car insurance options.